TransCanada to Build, Own and Operate Mexican Pipeline

TransCanada Corp. has been chosen to build, own and operate the Tuxpan-Tula Pipeline in Mexico. Construction of the pipeline is supported by a 25-year natural gas transportation service contract with the Comisión Federal de Electricidad (CFE), Mexico’s state-owned power company.

TransCanada expects to invest $500 million in the 36-inch pipeline and anticipates an in-service date in late 2017. The pipeline will be 155 miles long with contracted capacity of 886 MMcf/d.

Beginning in Tuxpan in the state of Veracruz, the pipeline will extend through the states of Puebla and Hidalgo, supplying natural gas to CFE combined-cycle power generating facilities in each of those jurisdictions, as well as to the central and western regions of Mexico. The pipeline will serve new power-generation facilities as well as those operating with fuel oil that will be converted to natural gas. Construction is expected to start in 2016.